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Speaker 1: Baker Hughes. The stock is up by about three percent,

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Speaker 1: reporting very solid numbers. Now it has two main areas

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Speaker 1: of business here when it's oilfield services and then industrial

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Speaker 1: and energy technology. So let's think of it more like

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Speaker 1: you get oil and gas traditional drilling, and then you

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Speaker 1: get more LNG exports facilities. For example. Joining us now

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Speaker 1: is the CEO Lorenzo Simonelli. Lorenzo, thank you for your patience,

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Speaker 1: Thank you so much for being here as well. Very

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Speaker 1: strong numbers. Growth strong on both sections. Let's just take

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Speaker 1: one at a time. Let's go to oilfil services for

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Speaker 1: a moment. The overhang is m and A. Everyone seems

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Speaker 1: to be getting together. Does that mean more or less

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Speaker 1: business for you?

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Speaker 2: Alex, Good to be with you and yes, coming off

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Speaker 2: some very strong THAD quota results and really, as we

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Speaker 2: said at the beginning of the year, we're seeing tailwind

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Speaker 2: across both of our business segments and we think that

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Speaker 2: that's a.

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Speaker 3: Multi year tailwind.

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Speaker 2: To your question around consolidation, obviously the Xon announcement, the

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Speaker 2: Chevron as we look at prior consolidations, we think it's

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Speaker 2: an opportunity for Baker Hughes. Again, we're one of the

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Speaker 2: large players in oilfield services and equipment, and we have

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Speaker 2: extensive relationships and partnerships with these large companies. So as

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Speaker 2: we look to the future, we think that there'll be

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Speaker 2: growing opportunities on the oilfield services and consolidation is an opportunity.

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Speaker 3: As we go forward.

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Speaker 4: Lorenzo, good morning, it's guy. What sort of oil fields

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Speaker 4: are you going to be servicing. One of the big takeaways,

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Speaker 4: certainly of the deals we've seen over the last few days,

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Speaker 4: is that offshore seems to be back in a big way.

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Speaker 4: Is that the direction of travel and you're going to

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Speaker 4: make more money off that move necessarily versus seeing in

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Speaker 4: the oil patch in the shale patch.

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Speaker 2: Guy, it's going to be a mixture of both onshore, offshore,

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Speaker 2: and really international activity is where we see the growing opportunity.

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Speaker 2: And as we look at next year coming up of

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Speaker 2: this year, where international is on mid teens, we see

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Speaker 2: double digit growth for next year as well, and we

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Speaker 2: see that ongoing as you look at the national old

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Speaker 2: companies as well as the large international companies Middle East.

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Speaker 2: What you're seeing in Guyana, what you're seeing in Brazil,

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Speaker 2: but then also in Africa with the new opportunities, so

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Speaker 2: we're more present on the international side, so we're dominally

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Speaker 2: focused there, and we're also more on the production side,

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Speaker 2: so we think that's more stable as we go forward.

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Speaker 1: So, Lorenzo, I'm talking about costs and your pricing power

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Speaker 1: in those areas right now.

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Speaker 2: Look, we see it as a constructive environment, and again

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Speaker 2: we make sure that we work closely with our customers

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Speaker 2: and we make sure that we're delivering value on the

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Speaker 2: components and the services that we provide. It's constructive and

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Speaker 2: we see that continuing as we go forward.

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Speaker 4: You talk about the international story. You mentioned the Middle East.

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Speaker 4: How are you thinking about the geopolitical situation as it

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Speaker 4: develops there? What are you doing with your people, what

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Speaker 4: contingency are you putting in place? Do you think that

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Speaker 4: could end up being a material impact in terms of

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Speaker 4: the next set of numbers we see from you.

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Speaker 2: Clearly, the situation is tragic, and you know, first and foremost,

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Speaker 2: you know, we look to the safety of our employees

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Speaker 2: and also we condemn any violence of any kind and

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Speaker 2: really our heart goes out to everybody that's impacted. At

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Speaker 2: the moment, again, from an activity level, we haven't seen

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Speaker 2: major disruption and we're monitoring the situation.

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Speaker 3: I think everybody hopes that.

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Speaker 2: There won't be furber escalation and that we're monitoring the

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Speaker 2: situation as we go forward.

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Speaker 1: Let's move to the other part of the business, which

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Speaker 1: is more exposed to sort of longer term trends, right,

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Speaker 1: industrial and energy technologies. Lorenzo, the numbers you're putting up

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Speaker 1: for this are humongous. I mean, you're looking at a

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Speaker 1: booking about eighty million tons per year of LNG orders

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Speaker 1: just this year. You're boosting your order and your backlog.

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Speaker 1: I mean, these are huge numbers. Is this purely an

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Speaker 1: LNG export story?

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Speaker 2: Really, it's the story that we've been saying for some

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Speaker 2: time that natural gas is a key element to the

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Speaker 2: energy transition and going to be a key aspect of

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Speaker 2: providing energy not just as a transition but a destination,

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Speaker 2: and LNG plays an important role. We came out previously

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Speaker 2: saying that we anticipated there needs to be eight hundred

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Speaker 2: mtpa of capacity installed by twenty thirty, and we're seeing

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Speaker 2: that come to fruition again. You mentioned the atmtpa that

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Speaker 2: we're taking inbound of waters this year. We still see

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Speaker 2: sixty five mtpa of FIDS for twenty twenty four.

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Speaker 3: Wow.

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Speaker 2: And as we go into twenty five and twenty six

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Speaker 2: thirty to sixty mtpa, and we are obviously ually a

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Speaker 2: key player in the liquefaction area providing the turbines that compressors,

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Speaker 2: and we continue to feel that it's an opportunity going forward.

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Speaker 1: Lorenzo, maybe an unfair question, but is this all Venture Global?

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Speaker 1: So Venture Global is building out L and G export

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Speaker 1: facilities with super low cash costs, in part because of

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Speaker 1: your ability to build out modular facilities in Florence and

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Speaker 1: then ship them to the US. Is this a pure

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Speaker 1: Venture Global thing.

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Speaker 2: No, I wouldn't say it's a pure Venture Global. Clearly,

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Speaker 2: Venture Global is a large contributor to what is being

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Speaker 2: done in the United States. But you also have other

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Speaker 2: players such as Shinaier. You also have next decade, you

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Speaker 2: have a number of projects as you look at also

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Speaker 2: port offer. So it's across the board. In the United States,

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Speaker 2: an opportunity to provide LNG to the world, and there's

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Speaker 2: a number of opportunities still to come.

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Speaker 3: Also internationally. You may have seen in the third.

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Speaker 2: Quarter we booked the add not gas ruas LNG and

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Speaker 2: that's again with a new electric motor and one of

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Speaker 2: the first lngs.

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Speaker 4: Yes, for the electide Lorenzo, I'm looking at a lot

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Speaker 4: of kit being built very fast. Is there a danger

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Speaker 4: that the market may get to the point fairly soon,

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Speaker 4: maybe twenty twenty five, that we are over supplied in

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Speaker 4: the LNG space.

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Speaker 3: What happens then if that's the case, We don't think so.

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Speaker 2: And the reason is, as you look at the opportunity

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Speaker 2: to continue to displace coal, you look at where the

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Speaker 2: energy demand is and China, India, leg is a natural substitution.

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Speaker 2: And as you look at the United States and Europe,

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Speaker 2: one of the key ways in which they've lowered their

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Speaker 2: greenhouse gas emissions has been by transitioning from coal to gas.

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Speaker 2: And we see that same opportunity as we go forward

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Speaker 2: for other developing countries for the consumption of energy.

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Speaker 4: Lorenzo, just to jump in, we are seeing Europe really

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Speaker 4: struggling with the energy transition. You look at what is

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Speaker 4: happening today with Zeman's Energy going to the governments for

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Speaker 4: support to support its business, to be able to do

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Speaker 4: deals not only in wind turbines but across its business range.

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Speaker 4: Do you think that the energy transition is going to

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Speaker 4: take longer? And does that mean the gas sticks around

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Speaker 4: for longer.

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Speaker 2: We actually mentioned it in our announcement today that we

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Speaker 2: do think that there's a realization on the complexity of

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Speaker 2: the energy transition.

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Speaker 3: The end destination is the same. It is going to

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Speaker 3: take longer, but it's also going.

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Speaker 2: To take all fuel sources, and that means that you're

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Speaker 2: going to have renewables, you're going to have the continued

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Speaker 2: use of natural gas, you're going to continue to use oil,

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Speaker 2: and it's going to require all of the fuel sources.

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Speaker 3: And the important element here.

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Speaker 2: Is how do you make the fuel sources lower carbon

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Speaker 2: content and move towards a lower carbon economy.

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Speaker 1: Lorenza, thank you so much. It is ful to see

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Speaker 1: you at Lorenzo Siminelli of Baker Hughes